Ordinance 1027
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ORDINANCE NO. 1027
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY AUTHORIZING
AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD
OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM.
The City Council of the City of Gilroy does ordain as follows:
SECTION 1. That an amendment to the Contract between the City
Council of the City of Gilroy and the Board of Administration, California Public
Employees' Retirement System is hereby authorized, a copy of said amendment
being attached hereto, marked 'IExhibit A'~,and by such reference made a part here-
of as though herein set out in full.
SECTION 2. The Mayor of the City Council is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said
Agency.
SECTION 3. This Ordinance shall take effect 30 days after the
date of its adoption, and prior to the expiration of 3 days from the passage
thereof shall be published at least once in the Gilroy Dispatch, a newspaper of
general circulation, published and circulated in the City of Gilroy and thence-
forth and thereafter the same shall be in full force and effect.
ADOPTED AND APPROVED this 2nd day of December, 1974, by the
following vote:
AYES:
NOES:
COUNCIL MEMBERS: DE BELL~ DUFFIN~ HUGHAN~
PATE~ STOUT AND GOODRICH.
COUNCIL MEMBERS: NONE
COUNCIL MEMBERS: SILVA
APPROVED:
ABSENT:
7~~~~
MAYOR
ATTEST:
"
RESOLUTION NO. 1027
EXHIBIT A
.A.JIENDMEN! TO CONTBACT BETWEEN THE
BOARD 01' ADMINISTRATION
PUBLIC EMPLOYEES' RETIBEMENT SYSTEK
AND mE
CITY COUNCIL
0]' THE
CITY Ol!' GILROY
!he Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the CITY COUNCIL of the CITY 0]' GILROY, hereinafter re-
ferred to as Public Agency, having entered into a contract under date of May 21,
1968, effective July 1, 1968, as amended effective November 3, 1971 and August 1,
1973, and as provided by Chapters 170 and 316, Statutes of 1971, which provide
for participation of Public Agency in said System, Board and Public Agency hereby
agree as follows:
A.. Paragraphs 1 through 11 are hereby stricken from said contract as executed
effective July 1, 1968, and are hereby replaced by the following paragraphs
numbered 1 ~ 9 inclusive:
1. All words and terms used herein which are defined in the Public Employ-
ees' Retirement Law shall have the meaning as defined therein unless
otherwise specifically provided. "Normal retirement age" shall mean
age 60 for miscellaneous members and age 55 for local safety members.
2. Publio Agenoy shall participate in the Public Employees' Retirement
System from and after July 1, 1968, ma.k:1ng its employees as herein-
after provided, members of said System subject to all provisions of
the Public Employees' Retirement Law except such as apply only on
election of a contracting agency and are not provided for herein and
to all amendments to said Law hereafter enacted except such as by
express provision thereof apply only on the eleotion of contracting
agencies.
3. Employees of Public Agency in the following classes shall become mem-
bers of said Retirement System except such in each such class as are
exoluded by law or this agreement:
a. Local firemen (herein referred to as looal safety members);
b. Local policemen (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to
as miscellaneous members).
The following employees shall be excluded from membership in said
Retirement System:
PERSONS COMPENSATED ON AN HOURLY BASIS.
ELECTED OFFICIALS.
Ret. Form 702-1
'-
4. Assets accumulated with respect to members in the local Retirement
System were transferred to the Public Employees I Retirement System
within four months of the effective date of this contract and
applied against the liability for prior service incurred hereunder.
That portion of the assets so transferred which represented the
accumulated contributions (plus interest thereon) required of the
employees under said local system were credited to the individual
membership account of each such employee under the Public Employees1
Retirement System.
5. The fraction of final compensation to be provided for each year of
credited prior and current service as a miscellaneous member shall
be that provided in Section 21251.13 of said Retirement Law with
811 service prior to termination of Social Security coverage subject
to the reduction provided by said section.
6. !he following additional provisions of the Public Employees I Retire-
ment Law which apply only upon election of a contracting agency shall
apply to the Public Agency and its employees:
a. The fraction of final compensation to be provided for each yea:r
of credited prior and current service as a local safety member
shall b~ that provided in Section 21252.1 of the Retirement Law.
b. Section 20952.5 (proViding for age 50 as the minimum voluntary
retirement age for local safety members with benefit payments
cOIlDllencing prior to age 55 subject to actuarial discount).
c. Section 21380-7 (providing for allowances for survivors of mem-
bers covered under the program upon death before retirement).
d. Section 21361.5 (providing that yea:rs of service rendered as a
member of the Local Retirement System prior to the effective
date of this contract sball be included in the computation of
the basic death benefit provided in Section 21361 upon the
death of any member who was also a member of said local system).
e. Section 21222.1 (providing for increases in allowances to which
the annual cost-of-living provisions apply, payable for time
cOIlDllencing on August 1, 1973 to or on account of persons retired
or members deceased on or prior to December 31, 1970).
7. Public Agency shall contribute to said Retirement System as follows:
a. Wi th respect to miscellaneous members, the public agency shall
contribute the following percentages of monthly salaries earned
as miscellaneous members of said System:
(1) 1.63 percent until June 30, 1980 on account of the liability
for prior service benefits.
(2) 7.67 percent on account of the liability for current service
benefi ts.
(3) 1.00 percent on account of the liability for the 1959 Survivors
program.
Ret. Form 702-2
.
-.
b. Wi th ;;;pect to local safety members, ilie public agency shall con-
triln1te the following percentages of monthly salaries earned as
local safety members of said System: .
(1) 2.998 percent until June 30, 1988 on account of the liability
~or prior service benefits.
(2) 9.930 percent on account of the liability for current service
benefi ts.
(:s) 0.500 percent on account of the liability for the 1959 Survivors
program.
c. A reasonable amount per annum, as fixed by Board to cover the costs
of administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or the period-
ical investigation and valuation required by law.
d. j, reasonable amount as fixed by the Board, payable in one install-
ment as the occasions arise, to cover costs of special valuations
on account of employees of Public Agency, and costs of the period-
ical investigation and valuation required by law.
8. Contributions required by Public Agency and its employees shall be sub-
3ect to adjustment by Board on account of amendments to the Public
Employees I Retirement Law, and on account of the experience under the
Retirement System, as determined by the periodical investigation and
valuation required by said Retirement Law.
9. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System wi thin thirty days after the
end of the period to which said contributions refer. If more or less
than the correct amount of contributions is paid for any period, proper
adjustment shall be made in connection with subsequent remittances,
or adjustments on account of errors in contributions required of any
employee may be made by direct cash payments between the employee and
Board. Payments by Public Agency to Board may be made in the form of
warrants, bank checks, bank drafts, certified cheeks, money orders,
or cash.
:B. This amendment shall be attached to said contract and shall be effective
on the ~ of
Wi tness our hands this
~of
.
Attest:
CITY COUNCIL OF THE
CITY OF GILROY ~~
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:BOARD OF ADMINISTRATION
PUBr..IC EMPLOYEES I RETIREMENT SYSTEM
BY
William E. Payne, Executive Officer
Ret. Form 702-3
"'-'
I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do hereby
certify that the attached Ordinance No. 1027 is an original ordinance,
duly adopted by the Council of the City of Gilroy at a regular meeting of
sa i d Counc i I held on the 2nd day of December ,19~, at whi ch
meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
thi s 3rd day of December ,19 .:J.!L.
(S ea I)